Must-Read: Tim Duy: Why the Fed Is Likely to Stand Pat This Week

Must-Read: Tim Duy: Why the Fed Is Likely to Stand Pat This Week: “The Federal Reserve is looking for a time with minimal downside risks…

…to raise interest rates. The wavering global economy is likely creating enough downside risk to defer that first hike to a later meeting. But the Fed still wants to begin normalizing policy, and it will signal that it remains committed to a rate hike this year. Regardless of the global situation and the inflation picture, I suspect it will feel increasingly compelled to do just that as the unemployment rate drifts below 5 percent.